Hottest Houston Real Estate Market Insight 2019

The Texas real estate market has been pretty quiet for a little under a decade now, but the real estate market in Houston has managed to remain relatively consistent while its surrounding areas have dragged their feet. There was a time when Houston seemed immune to the highs and lows of housing cycles, but it now seems to have joined the pace of the national average. But its rate of appreciation continues to be slightly above the national rate. The Houston Real Estate Market is becoming a hotbed of buyer activity that could be really beneficial for real estate investors; just ask the multitude of overseas investors who are choosing Houston as the city of choice to invest in for the foreseeable future.

If you are a home buyer or real estate investor, Houston definitely has a track record of being one of the best long term real estate investments in America through the last ten years. The Houston Real Estate Marketforecast 2019 is good, and current home prices in Houston are relatively low, so if you want to get on board the Houston real estate investing then now would be a great time to do so. The combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push the home prices in Houston to a higher side.

With an extremely diversified economy and a huge demand for housing, the Houston real estate marketremains one of the top markets in the US for real estateinvesting. The most recent population figures for the city show a figure of more than 2.3 million people, and the past two decades have seen billions of dollars in both public and private investment to develop areas and make Houston a more attractive place to live and to visit. Residential units, hotels, office buildings, restaurants; the city goes into 2019 with continuing development projects that promise to keep the real estate market strong. Let’s take a close look at the latest Houston real estate market trends and forecasts for 2019 & 2020 and find out why to invest in this hot Texas market.

Houston Real Estate Market After Hurricane Harvey

Hurricane Harvey had some fascinating and somewhat surprising effects on the Houston Real Estate Market. Harvey’s devastating economic impacts have a silver lining for home buyers in the Houston. Houston real estate market forecasts look promising after the hit the city took from Hurricane Harvey in 2017. Big weather events hit many areas of the USA hard last year, and the costs of repairing the damage have been astronomical.

But Houston has shown its trademark resilience, and 2018 is predicted to see real estate growth of 2.8% in the city, meaning now would be a good time to invest. Hurricane Harvey tremendously impacted the real estate market in Houston, Texas. Houston had some of the largest swings in real estate value. So what were the economic ramifications of Hurricane Harvey on this delicate market?

First, people have renewed interest in houses that were located in areas that did not flood. This isn’t a particularly surprising statistic. Buyers now have confirmation that these areas can survive a catastrophic event and that they won’t be in any danger of damage. A recent trend, though, has been that homes in areas that were damaged by Hurricane Harvey have started to see a pick up in sales.

Many houses that were damaged are being quickly sold to real estate investors. They saw an opportunity after Hurricane Harvey to buy damaged homes on the cheap in the Houston Real Estate Market. This has, in turn, led to Houston becoming a valuable “hot spot” for the real estate market in the US.

In October alone, 6,381 homes were sold in the Houston Real Estate Market, an increase of 7.5% over the same period of time last year. Agents are not only selling houses at a faster rate, but they are also commanding a higher price for their sales. Realtors are selling houses in Houston, Texas for over $7,000 or more than in the previous years.

Perhaps the largest increase, though, has been in rental marketing. People whose houses Hurricane Harvey damaged have been looking to rent since the hurricane struck in late October. In fact, the rental market in Houston is approaching an all-time high. Investors are also intrigued by this statistic as it allows them to make money off of houses they may not be residing in at a given time.

This has further contributed to an increase in the housing market in Houston, Texas. The rental statistics for single-family homes and townhomes/condominiums are staggering. Single-family homes saw an increase of 83.6 percent over a 365 day period while townhomes and condominiums saw an increase of a mind boggling 92.2 percent. It is not surprising, then, that investors have flocked to the area with the idea of making a quick buck. As many have learned, the profit that could be acquired in this area is immense.

The housing market in Houston is in exciting new territory. Although Harvey’s effects were absolutely devastating, the hurricane also contributed to the Houston housing market’s new rise after Harvey. Houston’s inspiring efforts to come together and recover shows the resilience of the people there and the city’s strength. The government’s quick response to the tragedy and their overwhelming desire to help the people exhibits the city’s importance on a national, and continental, scale.

Houston housing marketremained in the recovery mode in 2018following devastating floods from Hurricane Harvey. People living in more expensive cities such as New York, Los Angeles, and San Francisco flocked to cheaper living cities such as Houston, Texas. Many workers were fed up with the costs in these regions and were having difficulty surviving in areas with labor shortages, rising mortgage rates, and higher lumber costs. All these factors contributed to a significant upward trend in the Houston housing market in 2018.

What Is Houston Famous For?

Houston is by far the country’s number one job creator, the home of America’s booming energy industry, is more diverse than New York City (PDF) and lets you stretch a paycheck farther than anywhere else in the country. For those of you who do not know, let us discuss what is Houston famous for.

18 Interesting Facts About Houston

It’s got the jobs. Houston is the country’s number one city for job creation. By a lot.

Its unemployment rate is far below the national level:

A paycheck goes farther in Houston than any other major metropolitan area.

Housing is affordable.

Houston didn’t experience a housing bubble the way the rest of the country did.

It’s home to more Fortune 500 headquarters than anywhere in America except for New York.

It’s one of the centers of America’s booming oil and gas industry.

Massive international trade gives another big jobs boost to the rapidly growing city.

Houston is called Space City for a reason; it’s home of the NASA Astronaut Corps.

The New York Times calls it ‘one of the country’s most exciting places to eat.’

A spectacular range of ethnic cuisines, fantastic seafood, and great barbecue.

Ignore the Astros. The Texans, Rockets, and Dynamo are all winners.

It hosts the world’s largest concentration of health care organizations, with scientists working hard to beat cancer.

The city is filled with world-class and unique museums and cultural landmarks, like the Rothko Chapel.

The combination of The University of Houston and Rice University means there are a bunch of smart people around.

Houston recently passed New York to become the most ethnically and racially diverse city in the US.

Houston Real Estate Market Forecasts 2019, 2020 & 2021

What is the Houston Real Estate Market Forecast? The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value. The median home value in Houston is $185,600. Houston home values have gone up 7.2% over the past year and their Houston real estate market prediction is that they will rise 3.4% within the next year.

The median list price per square foot in Houston is $141, which is higher than the Houston-The Woodlands-Sugar Land Metro average of $121. The median price of homes currently listed in Houston is $289,900. The median rent price in Houston is $1,500, which is lower than the Houston-The Woodlands-Sugar Land Metro median of $1,595.

Graph Credits: Zillow.com

According to LittleBigHomes.com, the Houston housing market forecast for the 12 months ending with the 3rd Quarter of 2019 is very positive. The Accuracy of the Trend Projection for Houston is 83%. Accordingly, they estimates that the probability for rising home prices in Houston is 83% during this period. If this Housing Market Forecast is correct, home prices in Houston will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.

Houston Housing Market Forecast 2019 – 2021

The Houston housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Houston is 76%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Houston is 76% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Houston Real Estate Market Forecast.

Houston Real Estate Market Trends

Houston real estate market trends show a 0% week-over-week rise in average listing price and a 3% rise in median rent per month. Trulia has 8,761 resale and new homes for sale in Houston, TX, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median rent in Houston is $1,595 and the average listing price is $340,733.

As per the real estate company named Redfin, the Houston housing market is somewhat competitive. Homes in Houston receive 2 offers on average and sell in around 48 days. The average sale price of a home in Houston was $213K last month, down 0.93% since last year. The average sale price per square foot in Houston is $108, up 4.9% since last year. Homes typically receive 2 offers. Homes for sale in Houston, TX sell for about 3% below list price and go pending in around 48 days. Hot Homes in Houston, TX can sell for around list price and go pending in around 14 days.

There are 15,818 homes for sale, ranging from $1.4K to $30M on Realtor.com. 1,252 of which were newly listed within the last week. Additionally, there are 7,177 rentals, with a range of $250 to $20K per month. In December 2018 the housing market in Houston, TX was a balanced market, which means there were a healthy balance of buyers and sellers in the market.

Graph Credits: Realtor.com

The median list price of homes in Houston, TX was $279.9K in December 2018, flat year-over-year. The median listing price per square foot was $125. Homes in Houston, TX sold for 100% below asking price on average in December 2018. On average, homes in Houston, TX sell after 70 days on the market. The trend for median days on market in Houston, TX is flat since last month, and flat since last year.

Graph Credits: Realtor.com

The median list price in Houston is $345,000 on Movoto.com. The median list price in Houston went up 1% from February to March. Houston’s home resale inventories is 9,369, which increased 1 percent since February 2019. The median list price per square foot in Houston is $167. February 2019 was $165. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in March.

Graph Credits: Movoto.com

Houston, TX Single Family Homes

As per the data from the real estate company called Neigborhoodscout.com, the median house value in Houston, TX is $156,906 and the house prices are near the national average for all cities and towns. Single family detached homes are the single most common housing type in Houston, accounting for 45.11% of the city’s housing units.

Other types of housing that are prevalent in Houston include large apartment complexes or high rise apartments ( 43.47%), duplexes, homes converted to apartments or other small apartment buildings ( 5.29%), and a few row houses and other attached homes ( 5.15%).

People in Houston primarily live in small (one, two or no bedroom) single family detached homes. Houston has a mixture of owner-occupied and renter-occupied housing. Currently, there are 8,382 single family homes for sale in Houston, TX on Zillow. Additionally, there are 2,829 single family homes for rent in Houston, TX.

Houston TX Foreclosures And Bank Owned Homes

The percent of delinquent mortgages in Houston is 1.2%, which is higher than the national value of 1.1%. On RealtyTrac, there are currently 1,738 properties in Houston, TX that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,285.

In January, the number of properties that received a foreclosure filing in Houston, TX was 34% higher than the previous month and 16% higher than the same time last year. Home sales for December 2018 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Houston, TX was $0. The median sales price of a foreclosure home in Houston, TX was $0, or 0% higher than non-distressed home sales.

Foreclosures in Houston = 1,738

Homes for Sale = 2,285 (RealtyTrac)

Recently Sold = 3,831

Median List Price = $249,995 (2% ⇓ vs Dec 2017)

Houston Home Prices And Real Estate Appreciation

Houston real estate appreciated 52.91% over the last ten years, which is an average annual home appreciation rate of 4.34%, putting Houston in the top 10% nationally for real estate appreciation, according to NeighborhoodScout’s data. Both the average and the median home prices in Houston for a single family home hit their highest levels ever in October 2018. The average home price in Houston increased 3.5 percent to $294,500, and the median home price was up 3.6 percent to $234,653. Freddie Mac predicts that the home prices in Houston will increase by 4.3 percent in 2019.

While the rapid real estate appreciation Houston witnessed earlier in the decade has slowed, the combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push home prices in Houston. According to the Bloomberg report on Houston Real Estate Market – “Far from declining, the Houston home prices and rents are expected to rise given the sudden housing shortage. Out-of-state investors have even started to swoop in to acquire damaged homes to repair and sell or rent.”

Houston Home Prices Trend 2019

6.9%

10.4%

13.9%

17.4%

Next 24 Months

Next 36 Months

Next 48 Months

Next 60 Months

The above Houston Home Prices Trend is from Metropolitan Statistical Area.

According to National Association of Realtors (NAR) Chief Economist Lawrence Yun, the price appreciation will slow down, but the home prices in Houston will continue to rise. Although the desire to own a home remains strong, the combination of higher home prices and rising mortgage rates will make it increasingly difficult for many first-time buyers to afford one.

Appreciation rates are so strong in Houston that despite a nationwide downturn in the housing market, Houston real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Houston appreciation rates continue to be some of the highest in America, at 8.00%, which is higher than appreciation rates in 82.48% of the cities and towns in the nation.

Based on the last twelve months, short-term real estate investors have found good fortune in Houston. Houston appreciation rates in the latest quarter were at 2.20%, which equates to an annual appreciation rate of 9.09%. Relative to Texas, their data shows that Houston’s latest annual appreciation rate is higher than 80% of the other cities and towns in Texas.

Best Neighborhoods in Houston To Invest in Real Estate in 2019

There are 149 neighborhoods in Houston. Neartown – Montrose has a median listing price of $609.9K, making it the most expensive neighborhood. Acres Home is the most affordable neighborhood in Houston, with a median listing price of $77,000. These are the 10 best neighborhoods in Houston to buy a property for investment in 2019.

1. Kingwood Area, Houston, TX

The top pick is a suburb called Kingwood Area. It is highly populated with more than 83,000 people. Home prices and rent in Kingwood area are both above average here, and the shores are a definite crowd pleaser. The links to the city center are convenient, but Kingwood has plenty to offer in itself. A good place to consider with its potential for growth and development.

2. El Lago, Houston, TX

This suburb is just outside Taylor Lake Village, and is very sparsely populated with fewer than 3,000 residents. Home prices and rent in El Lago are fall slightly below the national average here, so the potential for growth is rather exciting. It’s a quiet neighborhood with a good jobs market, so very appealing for potential buyers or tenants.

Zillow has 7 homes for sale and 3 rental listings in El Lago TX.

3. Clear lake, Houston, TX

Clear Lake city is a master-planned community located in southeast Harris County, Texas, within the Bay Area of Greater Houston. It is the second-largest master-planned community in Houston — behind Kingwood. Clear Lake enjoys all the amenities you’d expect from a larger city, but is actually quite small and inviting. And the large lake is a definite selling point.

The population is quite high, topping 83,000, and home prices in this Houston area are a little above the national average. The open spaces here are worth noting, because they are attractive for buyers and they show potential for development, so a little research could unveil a good investment opportunity in Clear Lake. Zillow has 194 homes for sale in Clear Lake Houston.

4. Addicks Park Ten, Houston, TX

Addicks Park Ten is located in the westernmost part of the City, north of Interstate 10. Most of the area is made up of the Addicks Reservoir, a large flood control dam. One of the more affordable suburban neighborhoods, Addicks Park Ten ticks a lot of boxes for potential buyers or tenants.

It has good connections to the city center, and plenty of things within its own boundaries to attract new residents. Home prices fall pretty close to the national average here, but the Houston magic of price growth could make investment here profitable. And average rent is higher than the national average here.

5. Taylor Lake Village, Houston, TX

Taylor Lake Village is a city in Harris County, Texas, United States. Taylor Lake Village is another area where the median home value is only a little above the national average, but rental values are sky high. Another beautiful suburban neighborhood, Taylor Lake Village is something of a tourist attraction because of close proximity to NASA and the Johnson Space Center.

Purchasing a property here could be a real money-spinner if placed on the tiny rental market, but home price growth is likely to net you a tidy profit as well.

Zillow has 27 homes for sale and 3 rental listings in Taylor Lake Village TX.

6. Greatwood, Houston, TX

Greatwood is a census-designated place and master-planned community located in the extraterritorial jurisdiction of Sugar Land within Fort Bend County, Texas, United States. For its mix of city location and rural surroundings, Greatwood will tick a lot of boxes for many buyers.

Property values are above average here, but rent prices are extremely high due to the shortage of rental properties available – 94% of Greenwood homes are occupied by their owners. This should be an appealing statistic for investors, and the house price growth may follow suit as the balance between housing and open spaces continues to shift.

7. Memorial, Houston, TX

The Memorial area of Houston, Texas is located west of Downtown, northwest of Uptown, and south of Spring Branch. The first of the more distinctly urban areas on our list for Houston, Memorial has a population of 52,000 with real estate values way above the national average.

The median property price is $442,500, and the median household income is more than twice the national average. For those that can afford it, Memorial is a great place to live and it wins the niche.com award for best place to raise a family. Memorial homes enjoy easy access to schools, stores, restaurants, entertainment centers, and parks.

Investors looking to rent out properties might find Memorial most alluring. According to Houston’s Best Public Schools, the area is zoned to some of the top ranked schools in Texas including Memorial Drive Elementary, Frostwood Elementary, Wilchester Elementary, Bunker Hill Elementary, Memorial Middle and Memorial High.

Zillow has 274 homes for sale and 353 rental listings in Memorial Houston.

MEMORIAL REAL ESTATE FACTS

Total Homes for Sale:

254

Median Home Values Estimate:

$511,500

Home Value Forecast:

-11%

8. Lake Houston, Houston, TX

Though another suburban district, Lake Houston has a considerably largest population above 73,000, with real estate values averaging close to the national median at $175,915. The Lake Houston region consists of several growing communities. From golf courses to country living and from upscale mixed-use developments to signature shopping, the Lake Houston Area has it all.

The listings on niche.com rate Lake Houston as the safest place to live in the Houston area, so the community is appealing to buyers looking for the more urban type of suburb. Interestingly, median household income here is nearly twice the national average, suggesting that the job market performs highly for such an affordable area.

Zillow has 244 homes for sale and 26 rental listings in Lake Houston.

LAKE HOUSTON REAL ESTATE FACTS

Total Homes for Sale:

171

Median Home Values Estimate:

$231,600

Home Value Forecast:

0.5%

9. New Territory, Houston, TX

With a population of 15,494, New Territory is another suburban neighborhood where house prices and rental values are above the national average. New Territory is a census-designated place and master-planned community within the extraterritorial jurisdiction of Sugar Land in Fort Bend County, Texas, United States.

It is a popular area with quiet streets and lots of community programs, and as such the population is likely to keep rising. As usable land for housing decreases with current housing developments, property prices are likely to increase, so the investment opportunity is there.

According to har.com:

Homes for Sale in New Territory‎: ‎52

Average Price/Square Ft‎: ‎$121

Average Price‎: ‎$382,739

Average Bedrooms‎: ‎4.02

Zillow has 101 homes for sale and 68 rental listings in New Territory Sugar Land.

10. Cinco Ranch, Houston, TX

Cinco Ranch is a census-designated place and master-planned community located in the extraterritorial jurisdiction of the city of Houston within Fort Bend and Harris counties in the U.S. state of Texas. This suburban neighborhood is known for its great community and array of superb schools and shopping centers.

Residents praise the comfort and safety of the area, and the population is listed as 17,015 on niche.com. Median home values are considerably above the national average at $292,500, and the job market caters for above-average earners. The area attracts buyers and renters who can afford the higher home prices Houston, so as growth continues there are profits to be made.

Zillow has 59 homes for sale and 58 rental listings in Cinco Ranch,TX.

Houston Real Estate Investment Properties

Maybe you have done a bit of real estate investing in Houston, TX but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Houston, TX. Houston is a diverse city with lots to offer that will cater to the tastes of a variety of potential buyers and tenants. Many of Houston’s neighborhoods are some of the most attractive places to live in the whole of Texas, and it’s not hard to see why.

With a great balance of urban regions and open spaces in the suburbs, the potential for development is clear to see, and the natural features of the land are some of the most attractive features you could hope for in an investment district.

Buying an investment property is different from buying an owner-occupied home. Our Houston investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business. These are “Turnkey Cash Flow Investment Properties” located in some of the best neighborhoods of Houston, TX.

Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities.

Free Membership

Let us know which real estate markets you consider best for real estate investing!If you need an expert investment advise, you may fill up the form given here.

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

REFERENCES:

Downtown Houston https://www.downtownhouston.org/development

Best Places To Live In Houston
https://www.niche.com/places-to-live/search/best-places-to-buy-a-house/m/houston-metroarea